Filing itr-3 share trading business

ITR 1246 views 3 replies

Sumit

student

25 Points Joined June 2018

Respected Members,

I have a query, If a housewife regularly trades in share merket, her trading activities will be classified as Business.

A lady has a Turnover of Rs. 17 lakhs from trading in share market during (FY 2017-18) and Earns a profit of Rs. 1.5 Lakhs

PS: Turnover = Intra-day (Differnce Between Sale Value & Purchase Value) + Delivery Based (Total Sales Value).

She is now required to File ITR-3 and require to prepare Balance Sheet & P&L Account

My Question are:

1. Is she required to prepare Balance Sheet & P&L Account ?

2. She has a initial corpus of 1,50,000/- to start of the trading, in delivery trades, she use that amount time & again (sale & Purchase again & again) so, her total purchase value (in delivery trade cases) will be allowed to be deducted as cost of sales?

3. Balance Shares held at the end of FY will be treated as her closing stock?

I Sought ther Valuable views of members .

thanking you.

Replies (3)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

198045 Points Joined July 2016

1 No if income declared under presumptive assessment (minimum 8% profit u/s. 44AD)

2. Yes as per accounting standards......... but for sec. 44AD only over turnover basis.

3. Yes...

Sumit

student

25 Points Joined June 2018

Respected Sir,

I am happy to receive your reply, Kindly guide me further:

1. Can Tradng in Share Market be covered under presumptive business? some one is telling me NO. pleas guide

2. In case no, and the assessee prepares balance sheet and profit & Loss Account. her profit is 3.8% of turnover i.e. 65000 profit and turnover is 17 lakhs.. does it make any difference...... I mean do the Income tax authorities goes into enquiry ??

3. Turonver of share trading business will be calculated as follows:

Turnover = Intra-day (Differnce Between Sale Value & Purchase Value) + Delivery Based (Total Sales Value).

I shall be highly obliged to receive your reply

thanks and regards

Sumit

student

25 Points Joined June 2018

Respected Sir, I am happy to receive your reply, Kindly guide me further: 1. Can Tradng in Share Market be covered under presumptive business? some one is telling me NO. pleas guide 2. In case no, and the assessee prepares balance sheet and profit & Loss Account. her profit is 3.8% of turnover i.e. 65000 profit and turnover is 17 lakhs.. does it make any difference...... I mean do the Income tax authorities goes into enquiry ?? 3. Turonver of share trading business will be calculated as follows: Turnover = Intra-day (Differnce Between Sale Value & Purchase Value) + Delivery Based (Total Sales Value). I shall be highly obliged to receive your reply thanks and regards Sumit

Read more at: https://www.caclubindia.com/forum/filing-itr-3-share-trading-business-467580.asp